Early in 2020, Splish Equipment Company sold 500 Rollomatics at $5,900 each. During 2020, Splish spent $18,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis.

Prepare 2020 entries for Splish. Assume that Splish estimates the total cost of servicing the warranties in the second year will be $37,000. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) ate Account Titles and Explanation Debit Credit Cash 2950000 Sales Revenue 2950000 2020 Warranty Expense 18000 Cash 18000 1, 2020 Warranty Expense 19000 Warranty Liability 19000